Madras High Court
Commissioner Of Income Tax vs Bella Premier Happy Hygiene Care ... on 19 February, 2021
T.C.A.No.942 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 19.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.942 of 2014
Commissioner of Income Tax,
Circle – III, Madurai. ... Appellant
Vs.
Bella Premier Happy Hygiene Care Private Limited,
Ambaturai Gandhigram,
Dindigul District – 624 309. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
"A" Bench, dated 23.05.2014 in I.TA.No.525/Mds/2014 Assessment
Year 2009-10.
For Appellant : Mr.M.Swaminathan,
Senior Standing Counsel
For Respondent : no appearance
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T.C.A.No.942 of 2014
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.M.Swaminathan, learned Senior Standing
Counsel for the appellant/Revenue.
2.The appeal, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) are directed against the order
dated 23.05.2014 made in I.TA.No.525/Mds/2014 on the file of the
Income Tax Appellate Tribunal, Chennai, "A" Bench (for brevity, the
Tribunal) for the Assessment Year 2009-10.
3.The appeal was admitted on 26.11.2014 on the following
substantial questions of law:
“1)Whether on the facts and circumstances of
the case, the Income Tax Appellate Tribunal was
right in cancelling the penalty under Section
271(1)(c) when the assessee made a penalty
ineligible claim as per statute?
2) Whether on the facts and in the
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T.C.A.No.942 of 2014
circumstances of the case, the Tribunal was right in
cancelling the penalty under Section 271(1)(c) when
the assessee has made an incorrect claim towards
“loss on account of currency fluctuation” when the
return of income of the assessee is covered under
Section 44AB?”
4.The learned Senior Standing Counsel for the appellant submits
that the above appeal is not pursued by the Revenue on account of the
Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019 issued
by the Central Board of Direct Taxes. By the said Circular, the monetary
limit for filing or pursuing an appeal before the High Court has been
increased to Rs.1 crore. It is further submitted that the tax effect in these
cases are less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeal
is dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed are left open. In the event the tax
effect in this case is above the threshold limit fixed in the said
Circular, liberty is granted to the Revenue to make a mention to this
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T.C.A.No.942 of 2014
Court to restore the appeal to be heard and decided on merits. No costs.
Index : Yes/No [M.D., J.] [T.V.T.S., J.]
Internet : Yes 19.02.2021
va
To
The Income Tax Appellate Tribunal, Chennai, "A" Bench
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T.C.A.No.942 of 2014
M.DURAISWAMY, J.
and
T.V.THAMILSELVI, J.
va
T.C.A.No.942 of 2014
19.02.2021
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